Ch.1 Introducing Strategy Flashcards
What is the definition of strategy according to the book?
Strategy is the long- term direction of an organisation.
What are the three elements of strategy? Describe them briefly.
The three elements of this strategy definition – the long term, direction and organisation.
The long term. Strategies are typically measured over years, for some organisations a decade or more. The importance of a long-term perspective on strategy is emphasised by the ‘three horizons’ framework.
Strategic direction. Over the years, strategies follow some kind of long-term direction or trajectory. The strategic direction of Tesla Motors is from the disruptive competitive business model of the electric car to a diversified set of solar power offerings.
Organisation. In this book, organisations are not treated as discrete, unified entities. Organisations involve many relationships, both internally and externally.
Describe organisational Purpose, Vision statement, Mission statement and Objectives.
Organisational Purpose is the reason why a company exists.
A vision statement is concerned with the future the
organisation seeks to create.
A mission statement aims to provide clarity about what the organisation is fundamentally there to do on a daily basis, for employees and stakeholders.
Objectives are statements of specific outcomes that are to be achieved.
What is a strategy statement and what should it include?
All entrepreneurs and managers should be able to summarise their organisation’s strategy with a ‘strategy statement’. Strategy statements should have three main themes: the fundamental goals (purpose, vision, mission or objectives) that the organisation seeks; the scope or domain of the organisation’s activities; and the particular advantages or capabilities it has to deliver all of these.
What are the three levels of strategy? Describe them briefly.
Corporate-level strategy is concerned with the overall scope of an organisation and how value is added to the constituent businesses of the organisational whole.
Business-level strategy is about how the individual businesses (or operating units) should compete in their particular markets (this is often called ‘competitive strategy’).
Functional-level strategies are concerned with how the components of an organisation deliver effectively the corporate-and business-level strategies in terms of resources, processes and people.
What are the three branches of strategy? Describe them briefly.
This book therefore covers equally the three main branches of strategy research: strategy context, strategy content and strategy process.
Strategy context refers to multiple layers of environment, internal and external to organisations. All organisations need to take into account the opportunities and threats of their external
environments.
Strategy content concerns the content (or nature) of different strategies and their probability of success. Here the focus is on the merits of different strategic options.
Strategy process examines how strategies are formed and implemented.
What are the four strategy lenses?
Strategy as design, which might be likened to an architect’s approach that is systematic, analytical and logical.
Strategy as experience, which recognises that taken-for-granted assumptions and ways of doing things, biases and routines, will influence strategy.
Strategy as variety, which focuses on new ideas and innovation bubbling up in unpredictable ways in an organisation.
Strategy as discourse, which focuses upon the ways that managers use language to influence strategy making – that strategy talk matters.
